Why Do It Yourself Probate is Risky

We all want to save money.  That is both understandable and prudent for an estate trustee.

The key is not ‘do I want to save money’ but ‘what is the best way to do it’.

For many, Do-it-yourself (DIY) probate applications are truly a false economy – an attempt to save the estate a few dollars ends up costing the estate and beneficiaries much more money.

The Financial Implications of Delay

To appreciate the risks of DIY probate, consider the cost of time in estate matters. Whether your estate is substantial or modest, time plays a pivotal role. Imagine owning a million-dollar estate invested in Guaranteed Investment Certificates (GICs) earning a conservative 5% annual return, translating to $50,000 annually or $4,000 per month. So, if funds are not invested, every month of delay costs the estate $4,000.

These funds could serve various purposes, from staying within the estate to benefiting beneficiaries or settling debts such as mortgages, student loans, credit cards, or car loans. In reality, a 5% return rate is conservative.

For example, if a probate application is filed improperly and is rejected, it is common for that to add at least several months of delay – the Court will send a deficiencies notice, the trustee must understand and address the deficiency, and then the Court must review the application again.  It is not uncommon for a revised application to sit in the queue waiting processing several months.

In the hypothetical example of a $1,000,000 house that is sitting empty, which invested could be generating $4,000 per month, the loss to the estate and the beneficiaries from an improperly filed probate application can easily exceed $8,000 to $12,000.

And this presumes that the DIY trustee files as quickly as the trustee who is assisted by an expert.  Much more likely is that the DIY trustee needs time at each step to educate themselves and gather the right tools and equipment to do (or redo) the probate application.  Just finding the right Court forms can be a struggle.

The Emotional Toll of Delay

Beyond finances, emotional challenges accompany delayed probate applications. Estate matters intertwine with the loss of a loved one, making the grieving process difficult. Opting for the DIY path and encountering obstacles breeds anxiety, anger, confusion, and despair. These emotions strain relationships and compound an already arduous journey.  This is particularly true if some beneficiaries are sceptial of the estate trustee (for instance, think of stepchildren), and many beneficiaries have real financial needs and thus are anxious to receive their inheritance.

The Complexity of Probate Applications

The primary risk of DIY probate lies in the intricate probate application process. It involves a series of legal steps to validate a will and distribute assets properly. Errors or omissions, like incomplete forms, missing documents, or inaccurate asset valuations, can lead to delays and rejections.

Navigating these complexities without professional guidance amplifies the risk of costly mistakes.

The Value of Legal Expertise

Seeking an experienced professional is a prudent choice in the probate process. Although it involves a fee, this investment can save both time and money. The crux is making sure that you hire a a qualified and experienced probate lawyer (not all lawyers in Ontario have experience with probate).  .

Here’s why legal expertise is vital:

Comprehensive Knowledge: Probate laws are complex, with many nuances.  Experience makes a big difference to cost and speed.  

Accurate Valuation: Precise asset valuation is crucial for taxes and equitable distribution. Professionals provide accurate appraisals, preventing disputes.

Timely Resolution: Professionals expedite probate, navigating paperwork efficiently.

Error Prevention: They meticulously review documents, preventing costly errors.

Conflict Resolution: Professionals reduce family conflicts by acting as neutral parties.

Emotional Support: Entrusting probate to professionals allows you to focus on grieving and healing.

Choosing the Right Professional

Selecting the right professional is crucial. Consider:

1. Experience and Expertise: Prioritize professionals with a proven track record in estate and probate matters.

2. Transparent Fees: Ensure transparent pricing aligns with the value provided.

3. Personal Compatibility: Establish a harmonious rapport with your chosen professional.

4. References and Reviews: Investigate their reputation and service quality through references and reviews.

Conclusion: Peace Amidst Complexity

In summary, DIY probate poses considerable financial and emotional risks. The complexities, potential delays, and the emotional toll make professional guidance invaluable. It’s an investment in peace amid life’s tempests, allowing you to navigate the labyrinth of probate with clarity.

For probate or estate inquiries, reach out via email. We’re here to offer the support needed during this crucial time.

Miltons Estate Lawyers – Probate, Wills, Trusts and Estate